A legally binding agreement that is signed by both parties and that is either written or oral, is a contract. Sales Agreement, employment contracts, real estate purchase contracts, confidentiality agreements, insurance contracts or finders agreements, etc. are all examples of Contracts. Contracts are the establishments of a business and establishing a business without putting terms of business on record can land you in disputes, even though a lot of hard work is put into it.
The process of writing out the terms and conditions (details) of a contract, in order to highlight the legal obligations of the two parties, so as the terms of the agreement are fully understood by them, is called drafting of a contract. It also makes sure that the parties understand their respective duties towards one another. To draft a reliable and secure contract, an attorney is needed, especially in the case of complex contracts. The general objective of drafting a contract is to guarantee that each party completely comprehends the terms and conditions in the agreement. Along these lines, the individual drafting the contract should use clear and straightforward language, however much as could be expected.
We, at IP and Legal Filings (IPLF), through the support of Khurana&Khurana, have a devoted drafting team with specialization in International Sales, Commercial Agency, Confidentiality, Distributorship, Contracting, Subcontracting, Technology Transfer, Trademark Licensing and Turnkey Transaction. We assist in analyzing your drafts, preparing standard templates, recognizing the variables relevant to a contract, and creating a checklist of “clauses”, that may be helpful in conveying the different specifications of each agreement. We provide our clients with end-to-end solutions and all necessary support in a timely manner, in order to follow the legal formalities to start their business operations or conclude deals and also makes sure that their business interests are safeguarded.
1. Understanding requirement
The first step in drafting a contract/agreement is understanding the modus-operandi and subject matter from the party involved.
After receiving a write up from the party, a detailed discussion takes place between the counsel and the party.
3. Writing & review
Our experts then write a comprehensive agreement based on the write up and the detailed discussion and share with the client/party for their review.
The Final Agreement/Contract is confirmed after necessary iterations.
1. What is a Contract?
An agreement that has the force of law or is legally binding is called a contract. Contracts might be written or oral, however numerous significant agreements are often written and signed by the two parties. Agreements are the establishment of the business world and might be straightforward or very perplexing.
2. What is an Agreement?
An arrangement between two or more competent parties or a simple understanding, which is not legally binding is called an agreement.
3. Difference between Agreement and Contract?
An agreement is just a single component of a contract. The addition of elements like lawful objective and consideration makes an agreement a valid contract.
4. What kinds of contracts are drafted by us?
Our specialized drafting team draws up different forms of contracts, such as the Employment Contract, Memorandum of Understanding, Loan Agreement, Non-Disclosure Agreement (NDA), Non-Compete Agreement, Service Level Agreements ( SLAs), End-User License Agreements (EULAs), Shareholding Agreements, Franchise Agreement, Leave and Licensing Agreement, Affidavits and Declarations, etc.
5. What elements does a contract draft contain in general?
In terms of substance, while each contract varies from others, the following items usually form part of the agreement:
- Description of Parties
- Description of consideration
- Responsibilities and termination
- Disputes & Settlement
- Jurisdiction Involved
- The Signatures
6. What are the minimum requirements to form a contract?
To form a contract, three basic elements exist an offer, acceptance of the offer, and consideration.
7. What is consideration in a contract?
Anything that has some value and is exchanged in return for the performance of contractual duties, is termed as a consideration. It is important to support every contract through consideration. In other words, without receiving something in exchange, you can’t make a contract for one person to give something to the other. It is not mandatory that the consideration is of the same exact value as the goods or services rendered.
8. What is a breach of contract?
A breach of Contract occurs when one party doesn’t perform its obligations under the contract. There may several ways in which a breach of contract may occur: if a party does not act on time, it performs in a manner that does not comply with the terms of the agreement, or simply does not perform at all. In order to get relief, the non-breaching party will sue the infringing party.
9. When does a breach of contract occur?
A breach of contract usually occurs when a party fails to meet its obligations under the contract and the non-breaching party is not excused for such non-performance. Failure to pay for goods or services, the supply of faulty goods, or the failure to provide goods or services within the time limit stated in the contract are examples of a breach of contract. If a party breaches a covenant or other provisions in the contract, a breach may occur.
10. What kind of damages are available in case of breach of a contract?
Depending on the terms of the contract and the extent of the violation, the damages vary. Usually, the parties are entitled to compensatory damages intended to put them in the same position as if no breach had taken place. Contracts may involve provisions on the form or amount of damage that may be recovered in the event of a breach or specify a minimum amount of damage to be awarded in the event of a breach.
11. Why is it preferred to get contracts in writing?
A written contract gives each party the opportunity to fully understand its contractual obligations and raise any questions about the terms prior to signing.